Option Traders Tips and Tricks using Options Trading Strategies

Buckle Up for the Monster Rally!!

Oversold conditions are now in near epic proportions. Though yesterday we saw that fear can be much more potent than logic! But give enough time to think fear will be overcome by logic and when it will dawn upon traders. Monster Rally lurks in not-too-distant horizon.

Thursday market behaved like a ‘crash’ day – selling anything that came their way. Theoretically, there is chart support in the 1180-1200 area from last November.

Some really unusual numbers to consider:
Thursday’s $SPX close is 7.2 standard deviations below the 20-day moving average. This is clearly an oversold reading of major proportions. So, going by technical analysis 100-150 point rally may not be unusual.

Market breadth has reached oversold levels of near historic proportions. The “stocks only” oscillator stands at –939 right now. That is one of the most oversold readings in history.

Volatility ($VIX) or also referred as Fear Index jumped over 31% to record level. It is very difficult to sustain at that level for long and more than unlikely to have another jump in that proportion.

$VIX futures are all trading at deep discounts to $VIX. The front-month August futures settled at a 4.21 discount today. When a $VIX spike peak reversal buy signal occurs with all the futures at a discount, it is generally a more powerful buy signal, so that is a real possibility as well.

In summary, it’s staggering to see the amount of selling that has taken place in just two weeks. It is really on a par with 2008. Well but back then, we were already a full year into a bear market, and a major U.S. investment bank had failed, and the U.S. banking system was in danger of failing. None of that is true now. Is it caused by the European situation? Possible but, still not on a par with the U.S. situation in 2008. There has to be something more to it than the reasons cited. We can’t disregard the QE2 and the positive corporate earnings statements that they really didn’t see the economic problems.

It is true that intermediate-term may be negative, but the oversold conditions of historic proportions are sufficient to produce a monster counter-trend rally back towards the 20-day moving average.

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Red Robin Gourmet Burger (RRBG) earnings are due in a week and yesterday it entered the gap after last May’s earnings report. This surely is a strong negative pattern development. Even so that the stock volume patterns are not looking good either. There is a strong resistance at 34. We would be looking at a bearish strategy for the stock.

Talbot’s (TLB) is having a takeover rumor. Sycamore Partners bought a 10% stake and supposedly wants to talk to the company about a buyout. Though the Stock patterns are not that good but surely but steadily improving. It is a great opportunity for Options Trading Strategies to be put in place. We will go with a mild short term bullish approach.

Health Care REIT (HCN) was impacted due to the new government guidelines calling for a rate cut for skilled nursing care. This has impacted quite negatively to the stock charts. There is a strong resistance at around 51. We would be looking to create bearish Option Trading Strategies with HCN.

EV Energy Partners (EVEP) was upgraded by at least three brokerage firms because of the potential of the company’s discover in the Utica Shale properties. Stock patterns are positive and improving while there is a good support around 67.

Market Notes: Friday market showed positive bullish signals. While all the indicators pointed bullish and the candle pattern with the initial sell-off and then eventually climbing back to unchanged level was surely a positive signal on a Friday evening!!

Express (ESRX), Medco Health (MHS), and Walgreen (WAG) are all active stocks to watch. Their movement is linked together!! ESRX is buying MHS, which analysts view as beneficial to both stocks and negative for WAG. WAG is showing serious signs of weakness after it broke down multiple support levels at around 41 and with the weakening volume pattern. We would like to put together a bearish Options Trading strategy for WAG.

Interdigital Communications (IDCC) is keeping the speculators with them, with the bidding war prospect between Google (GOOG) and Apple (AAPL). Though we feel that the stock has gone too far ahead in the over-bought region and if no firm news emerges we will surely find the stock give back quite a few points.

Southern Union (SUG) continued being in the bidding war. Now, Energy Transfer (ETE) has come back with a new bid: either $44.25 in cash or one share of ETE (closed at 43.53). There will be a prorated allocation, though, and only 60% of the outstanding shares will receive cash. SUG shareholders will have to elect which one they want. Obviously, if ETE shares drop, cash will be the desired election. This hasn’t ended the bidding auction for SUG, though, since the stock is trading above the takeover price, perhaps thinking that Williams Cos. (WMB) might sweeten the pot one more time. A great pick for putting together Options Strategies!!

Aeropostale (ARO) is on the takeover rumor mill again. Stock patterns are terrible, though there is support around 17. We would like to wait and watch only.

PPD Inc. (PPDI) announced on Monday that they are looking at strategic alternatives. Yesterday, option activity picked up rapidly. Stock patterns are positive and improving rapidly, with a support around 28. A great opportunity to put together a bullish options strategy.

Market Notes: We expect it to stay within 12600 - 12300 range for the next week or two. Though we would put it more with a bearish inclination than bullish, and would be very worried if Dow touches 12300. We don’t expect that a bull run in the market can push it past 12600 level quite soon.

Clorox (CLX) is trading at a new all-time high as Carl Icahn made a bid of $76.50 for the company. Though most analysts still don’t consider this a serious bid, but rather a ploy to get someone else to buy the company. It would be interesting to use contrarian theory out here and go short term bearish on CLX.

Northgate Mines (NGX) is making an acquisition, and that seems to have been enough to spur a breakout in the stock. Stock chart patterns are quite strong.

Titanium Metals (TIE) is a takeover rumor. Though market does not seem to have reacted yet to the rumor. We would wait and watch for this stock.

James River (JRCC) is rumored to be having a takeover bid by PCX. Though the stock patterns seem to have not supporting it yet. We would like to wait and watch before taking any strategy on JRCC.

MBIA (MBI) with a support at around 9.0 is showing positive signs after the rumor that Bankamerica (BAC) is making offer to settle its mortgage lawsuit. Would be a good stock to take some speculative positions.

Southern Union (SUG) did receive a $44 bid from Williams Cos. (WMB). The stock is trading a bit higher than arbitrage value, which shows that there still maybe a small possibility of another bid from ETE. Great stock to put together options strategies.

Kinetic Concepts (KCI) did finally receive a bid at $68.50 confirming our takeover rumor. It is anticipated that the bid may be the highest bid and hence the stock also seems to be trading around the takeover bid price itself. Options interest is quite high and great to put together Options Strategies to take advantage of the volatility.

Royal Gold (RGLD) is showing a lot of strength again. It is a strong metal stock. The stock patterns are quite positive. With a support at around 62 it would be a good stock to go for a bullish Options Strategy.

End of Day Market Notes: Today’s early hour rally and then eventual easing out still shows that bears are dominating the market. Though stock ended with a modest gain but we believe that it should not be treated as an immediate strength. We are still expecting the market to slide further down in next few days.

is in the midst of a takeover battle. There are around two bidders for SUG. The volatility and the options volume are quite high in anticipation that

Date: Jul 12, 2011

Clorox (CLX) is on the rumor mill that Carl Icahn has increased his stake in the company. The current stake is at 9.4%. The stock is showing strength with a good support at around 68. A good candidate for bullish Options spread strategies.

Date: Jul 11, 2011

Notes on Market- Friday, the market took a big beating at the opening as a reaction to the poor jobs report. Though if you evaluate the candle chart then Friday’s action alone would be treated as a bullish action especially due to recovery during the last hours.

However, tonight in Globex trading S&P futures are down 10 points, putting them back near Friday’s lows. There are currently worries about Australian and European debt and the fact that some profit booking is overdue may take it’s toll on the market today.

Southern Union (SUG) takeover battle is heating up with WMB expected to raise its offer, now that ETF has done the same. This is leading to continued high option volume. With a high Implied volatility it would still be a great pick for creating Options Trading Strategies with bullish tone.

Date: Jul 8, 2011

Pharmerica (PMC) is in the takeover rumor mill. Though market seem to have eased out on the rumor as it was not able to keep up the spiked prices for long. The stock patterns are only mildly bullish yet. As an Options Trader we would like to keep our eyes open on its volatility for any interesting strategy that may evolve. For now will wait and watch.

Kinetic Concepts (KCI) continues to be a Leveraged Buyout (LBO) rumor, although the stock backed off on Thursday.

Nanometrics (NANO) traded at a 7+ year high. Though the stock volume patterns are just mildly positive and with a support at around 20 we would like to play a contrarian strategy here. Though it would be highly speculative in nature so it has to be short term only trying to work around an expected pull back.

Date: Jul 6, 2011

Southern Union (SUG) the takeover battle continues to push the stock higher in anticipation. ETE raised its bid, but the street is expecting more. With a high Implied volatility it would be a great pick for creating Options Trading Strategies with bullish tone.

Amerigroup (AGP) is trading at new all-time high. Stock volume patterns are positive. There is support around 70.

Under Armor (UA) is trading at new all-time high. Stock volume patterns are not too strong though. There is support around 79.

Herbalife (HLF) is trading at new all-time high. With support around 58 just below the breakout area, it is a great pick for speculative bullish Option Trading Strategy.

Tractor Supply (TSCO) is trading at new all-time high. With support around 67 just below the breakout area, it is a great pick for speculative bullish Option Trading Strategy.

Date: Jul 1, 2011

Dish Network (DISH) looks very promising and very bullish. It was upgraded by a broker and traded at a 3-year high. Stock volume patterns are positive and improving. With a support at around 29, we would be taking bullish Options position for DISH.

First Solar (FSLR) has been under a lot of pressure lately. But some good news are coming on its way with stock upgrade and loan guarantee. Though market is taking some time to react to these news but FSLR is gaining speed and looking bullish with a support around 130. Options traders may want to consider a bullish option trading strategy here.

Date: Jun 29, 2011

Achillon Pharm (ACHN) is in the rumor mill to be having talks to partner with a larger company or even sell it off. The stock traded at a 4-year high, although it closed with a negative intraday reversal. Stock volume patterns are positive and improving. Options Trading strategist can create option trading strategies for a short term pull back and long term bullish strategy.

Accenture (ACN) was upgraded coupled with its announcement that it will be added to S&P 500. This has made the stock reach new highs. Option Trading strategist can find some good volatility opportunities with Accenture.

Date: Jun 28, 2011

Commvault Systems (CVLT) seems to be brewing a takeover rumor, though nothing officially! The is showing a lot of strength overall. This is the last big data storage company around and DELL has been rumored buyer for the same. Great for putting together bullish Option Spreads around it.

NY Times (NYT) is rumored to be discussing a partnership with Google (GOOG). Though the stock volume patterns does not seem to be good. There is a good support at around 7. Would like to wait and watch on this.

Date: Jun 27, 2011

Southern Union (SUG) is in the hot seat of takeover and a possible bidding war is breaking out. It did receive two takeover bids last week. The last bid was for $39 and the stock is trading at $42 suggesting that the market is surely anticipating a bid war. A great time to for Options Traders to create strategies on volatility.

SuccessFactors (SFSF) went through a roller coaster ride last Friday. The volatility can be attributed to the downgrade that it received earlier and then subsequent upgrades later in the day. It did end negative below 30 and also has bearish charts. Implied volatility skews are common in such situations and Options traders should keep a close watch on this stock for opportunities.

Pharmacyclics (PCYC) is now trading at a 5-year high with strong stock volume and bullish chart signals. There seems to be good support at 9.

Date: Jun 24, 2011

Bristol Myers (BMY) got a boost and gapped up on favorable FDA rulings and news. There is a good support around 28. We expect the stock to hold up above its support, though there would be pull back as a result of gap up, but that is what options traders will be able to capitalize on.

Barclay’s (BCS) and St. Jude Medical (STJ) are showing a lot of weakness in the technical analysis. It would be a good strategy to create some bearish strategies around them using Options.

Date: Jun 23, 2011

L-3 Communications (LLL) seems to be getting in a hot position for private equity to get interested in the company. After some news was released about LLL and an announcement by shareholder about a 6% stake in the company, the stock traded extremely strong on the upside. All the technical seems to be improving. With a support around 83 we would like to take a bullish inclined Options Trading strategy for LLL.

ZAGG Inc. (ZAGG) announced that it had acquired the private company iFrogz. It jumped higher after the announcement. The stock volume patterns are quite strong and it has pushed through its earlier resistance sending out a bullish signal. We would put speculative bullish strategies around it.

had a very interesting move yesterday. 3 days back it shed almost 50% of its stock value when rumors spread that the chairman did not have the loans available to enact the $24 per share “going private” bid that had been previously made. Yesterday it gapped up regaining almost all of the decline! Now, that bid has been reaffirmed, but the stock is still trading well below the $24 price. This is a highly speculative situation. If you are looking for good speculative Options trade then for sure explore this opportunity!

is rumored that DELL is going to bid for the company. The stock has already started trading higher on this takeover rumor, though this rumor is not really a new rumor. The stock seems to have good support around 37 and looking good.

Liberty Starz Group (LSZTA) fell sharply after revealing a contract dispute with Netflix (NFLX). The breaking of support at around 74 and is quite bearish. Stock volume patterns are poor and worsening. We would like to construct a bearish position for the same.

McGraw-Hill (MHP) fell sharply after it was stated that the SEC is investigating the ratings companies. It broke through a strong support of around 40 and with weakening volume pattern it is ideal to play a bearish strategy.

broke down below its technical support at around 84 and technical indicator has put it as bearish. The stock volume patterns are not doing good either. Now the earlier support has become resistance Options Traders will have great opportunities to enter bearish or calendar strategies with CLF.

is going south due to the legitimacy of the Chairman’s loan. The research firm looks like is having a downward spin with high volatility.

Dean Foods (DF) is again into the takeover rumor mill, fifth time in past year! The stock volume patterns are quite strong and with a good support around 12, there are few Options Trading strategies that can be looked at. Though we would want to wait to find some good volatility skews to enter a trade.

Graham Packaging (GRM) did back the new $25 bid made yesterday. Though the traders seem to expect a higher bid to be coming soon. Great opportunities for options traders.

Graham Packaging (GRM) did receive a takeover bid from a New Zealand company for $25. This is higher than the earlier bid by Siligan Holdings at approximately $23. Market is expecting a bid war on GRM, and have reacted with high implied volatility and the stock is trading higher than the bid itself. Great opportunities for options traders.

Novellus (NVLS) is having a takeover rumor; this is the second in last 2 months. The stock volume patterns are positive. There seems to be a good support at 33.

CBOE equity-only put-call ratio continues to rise, telling us that sell signal may persist during the morning hours. Though it seems that we are in a overly oversold territory, and would expect the market to swing back any moments. This also means that bears may start loosing steam quite soon and bulls may start taking control, but it may stay at low levels for few days. If you are a speculative trader it would be an ideal time to put together a short term bullish strategy.

Bed Bath & Beyond (BBBY) is having a takeover rumor. The rumor does not seem to be a strong one though. There seems to be good support for BBBY at 51, and the stock volume patterns are slightly on the positive side. We would like to wait and watch before taking a strategy.

Elan Corp. (ELN) is having a strong takeover rumor. Biogen Idec (BIIB) seems to be the key bidder for the same in the rumor. Market is reacting positively to this rumor. Possible volatility skews are existing for few Options Trading strategies. There seems be a good support for ELN at around 9.50

Regeneron (REGN) is scheduled for an FDA hearing next week. The Options implied volatility (IV) is much higher which is making the Options very expensive. Quite a few volatility skews are emerging out. Great to play the volatility and given the fact that June2011 option expiry week is the next week, it would be ideal to sell some high IV June Options.

Titanium Metals (TIE) is back on the takeover rumor mill. Their 3^rd entry in just 6 months. May not like to take any immediate action on this, but it is worthwhile to keep an eye on it.

Raptor Pharm (RPTP) still continues to have its strong run in the wake of the drug trial announcements earlier in the week. Stock volume patterns seems to be extraordinarily strong. There seems to be a good support at around 5.

Capital One Fin’l (COF) is having a takeover rumor after about 9 months or so. Market hasn’t yet taken the rumor quite seriously yet as stock volume patterns haven’t improved much. We would not like to get into an Options position yet but will keep it on our radar only. There seems to be a good support around 48.

Pharmasset (VRUS) sky rocketed after their announcement of expansion of their drug trial. Also, a couple of analysts upgraded VRUS as well. Currently the stock is reaching new highs. Very strong volume patterns and technical graphs. It is quite likely that there would be a pullback that will be happening soon. Ideal to wait for the pull back around 110 level and then taking a bullish Options Trading strategy.

BioSante Pharm (BPAX) had been quite strong after FDA released a hold on the company’s trial of its prostate cancer vaccine. A phase 2 trial will now get underway. Call Options volume patterns are extraordinarily high, and the stock itself is quite strong in technical analysis.

Raptor Pharm (RPTP) is expected to release Phase 3 trial results by the end of July. This stock is getting a lot of analyst attention with quite a few upgrades for the same. Graphs and technical patterns are quite positive. We would be interested in taking a bullish call spread position for the same.

Tiffany’s (TIF) is in the takeover rumor mill for the 4th time this year! Good volume patterns and a support at around 72 is making it ideal for quite a few Options Trading strategies.

Temple-Inland (TIN) is having a high volatility after close on Monday. This is because TIN announced that it has received a $30.60 takeover bid from Int’l Paper (IP). Though it has already rejected the offer. The stock traded as high as 38 after hours. A great opportunity for Options Trading volatility strategy as there would be a lot of skew to play with.

United Therapeutics (UTHR) is giving us great opportunity to create Option trading strategies where we sell the high implied volatility for near month, Calendar strategies or ratios will work great here. The options are getting extremely expensive and even after Monday’s results on Phase 3 drug trial, the stock only shed 3 points, a proof on how expensive the options are.

Orexigen (OREX) report we sent out on June 2nd worked quite well very quickly. All those who played the volatility options strategy can book their profits. This is because the stock announced that it was having trouble with the FDA and has decided to table its obesity drug for the time being. The stock dropped sharply after that creating the opportunity.

Best Buy (BBY) there is a specific reason for the recent rumor, as Pershing Square has bought stake in it. Though the stock patterns for BBY is quite weak, but it is worthwhile to look into some Options Strategies on volatility skews that it may start having. The stock has a good support at 30.

AK Steel (AKS) is getting into its 7th takeover rumor this year. We should start having options on the number of takeover rumors for this itself.. ;-). With the stock pattern we would not like to play AKS on the takeover rumor news.

Brocade (BRCD) is having a strong rumor that DELL is the looking into it! Market reaction has been quite strong. Very good opportunity to put together some Options Trading strategies to leverage the current rumor. The stock seems to have good support at 6.50.

Orexigen (OREX) announced for a press conference for its obesity drug and the questions that FDA had around it. Obesity treatments have all been eventually rejected by FDA, but the stock had heavy options volume and rising stock prices on a day when the market was battered! Few good volatility strategies are emerging for Options Traders to take advantage.

Aastrom Biosciences (ASTM) is scheduled to have the results from the drug trial quite soon. The stock volume patterns are extraordinarily strong. This is news driven volatility and gives us great opportunity to play Implied Volatility (IV) strategies. There are a few volatility skews which would give more Options Trading opportunities.

Zale Corp. (ZLC) has seen a substantial rise, almost near to 75%, in a week itself. Since there is no news and interestingly Options Implied Volatility (IV) is not rising makes us believe that these are not rumor chasers. We anticipate that in such cases there would be an interim pull back, so an ITM calendar spread can provide great opportunity.

Sherwin-Williams (SHW) broke through a strong resistance around 86 after several months. This is always a good technical signal for an upcoming bullish trend. Graphs as supporting the same. We would like to use speculative Options trading strategies in this case.

American Eagle Outfitters (AEO) is on the takeover rumor mill. Though market hasn’t taken it seriously yet, as the stock volume patterns are not yet strong. We would keep a close eye on the same but would not like to trade it yet.

Magicjack Vocal Tech (CALL) had a meeting with Oppenheimer last Wednesday. There is no official news release yet for the meeting. Though good interest has been generated in the market place. It is quite ideal to have a speculative options strategy on it.

CenterPoint (CNP) is currently rumored as exploring strategic alternatives. Market has reacted positively to this and a lot of interest in the stock has been shown in the volume patterns.

Martha Stewart Living (MSO) clarified their strategic alternatives position - they are looking for a strategic partner, but are not interesting in shopping the entire company. The stock volume patterns are still very positive. Volatility skew strategies will work here.

Today we don’t have any new Takeover Rumors.

Cubist Pharm (CBST) had been bullish and it seems that it is going to have another bullish surge. With a mix of high implied volatility, heavy option volume, and extraordinarily strong stock volume it is strengthening bullish behavior even more. Though there is a support at 36, closing below 36 is our warning sign, and if it closes below 34 we would confirm a reversal and would exit out immediately.
Keeping the support limit in mind we can take position for June2011 38 Call, we would set a limit price of $2.35 !!
If you are entering into a speculative trade like this then we suggest that you setup a profit exit strategy too. We normally keep revising our stop loss target upwards if the stock trades our intended direction.

Avery Denison (AVY) is on the takeover rumor mill. Market is not taking this rumor seriously. There is a good support at 40, so would suggest that speculative options traders only take position, else wait and watch for the right entry point.

California Pizza Kitchen (CPKI) stock volume patterns seem to be extraordinarily strong. CPKI had received a $18.50 takeover bid from Golden Gate Capital. Though CPKI said that they are evaluating strategic alternatives, but this had been an year back! There is surely something brewing up there and speculative traders can take position. Options Traders watch out for volatility skews as they may create some very interesting volatility skew strategies.

Lexmark (LXK) is another takeover rumor. There is a support at 29, but considering the current technical of the stock, we would not recommend to play the takeover rumor.

Martha Stewart Living (MSO) is having some good action in their stock after their announcement that they are evaluating certain strategic alternatives. They are yet not clear in stating if they are considering sale as an alternative or not. Can put together some attractive Options strategies.

The Limited (LTD) is a new entrant to the takeover rumor. Market seems to be taking the rumor quite seriously with a strong volume pattern. It does have a good support around 37. Good stock to put together some Options Trading strategies.

Level 3 Communications (LVLT) has previously made a takeover bid for Global Crossing (GLBC), in which 16 shares of LVLT will be exchanged for each share of GLBC. This creates new and unique opportunity to as it makes GLBC highly leveraged way to play LVLT. LVLT is also trading at new high and with a support at 1.75, give some excellent trading opportunities.

Nexen (NXY) is yet another first-time takeover rumor. Though market seem to have not given enough attention to it yet, as the volume patterns are not good. There seems to be a support at 22.

Cheniere Energy (LNG) did receive government approval late Friday. Market is quite upbeat about it and is being reflected in our technical analysis too. Having a support around 10, we are quite bullish about it, and would love to put together bullish Options Spread Strategies.

G T Solar (SOLR) is now having a takeover rumor and did have a good earnings report too. Though we haven’t seen much activity around it yet. Keep an eye on the stock there would be some good Options Trading opportunities building up soon.

Home Inns & Hotel Management (HMIN) broke down below our support at around 38. With the technical charts and volume pattern indicating bearish trend and now having a resistance around 40, we should be looking out for some bearish options strategies.

Akamai Tech (AKAM) once again hit the takeover rumor mill last Friday. Stock volume patterns are suggesting that there are a lot of skeptics too. With a support at around 32 it is a good stock to keep an eye on.

Cubist Pharm (CBST) had been in news after winning a patent lawsuit some time back and seems that Astrazeneca (AZN) might be interested in buying CBST. Market seem to have reacted to this rumor quite strongly and there is a lot of activity happening. With a support around 34 it is a good stock to create few Options strategies.

Gamestop (GME) reported earnings and the takeover rumor hit at the same time. An explosive mix, resulting in strong interest in the stock. Great opportunity for Options traders.

Wendy’s (WEN) is another takeover rumor. With a support at around 4.60 we need to keep an eye on what happens next with this stock.

Sara Lee (SLE) has another takeover rumor – do you believe it!! Last 8 months it had more than a dozen such rumors. Interestingly it appears that market is reacting to it making it a great options strategy opportunity.

Lorillard (LO) we need to watch-out for this one. Since the FDA didn’t ban menthol cigarettes the stock had been on a bull run with about 35 points in couple of months. Technical showing extreme bullish trend.

Mosaic (MOS) had a new low while the stock continues to struggle. With a resistance at around 68 we can look for some good stock position entry points.

Symantec (SYMC) is again a takeover rumor for the 5th time since last September. This time it seems that the rumor is much stronger than the last time, so surely a lot of Options activity is expected. There seems to be a good support at 19. With this situation we can expect to put together few volatility Options strategies.

Western Refining (WNR) is yet another takeover rumor; it did have an earlier murmur couple of months back. This time the rumor seems to be strong. The volume patterns and the options activity give us some concern on the rumor itself. There seems to be a good support at 14 though. We can keep an eye on it, and may play the difference between historic volatility and implied volatility when it happens.

Adobe (ADBE) is having it’s 8th takeover rumor since Oct 2010 by MSFT. The stock is showing an emerging bullish trend already. It does have a good support around 34.

Caterpillar (CAT) is at a new low and with a strong resistance at 106 level and all technical indicators showing negative trend. For the contrarians it is an ideal time to get in and take a bullish stand, especially with carefully crafted options strategy you can enter into a very low risk high gain position.

CBOE (CBOE) is still maintaining its takeover rumor by NADQ. Good time to look at NADQ options strategy too.

Intercontinental Exchange (ICE) withdrew their bid for the NYSE (NYX). NYX fell sharply. Rumors are brewing that NDAQ will go after CBOE (CBOE). CBOE, does have a support at 27, right now with this increasing volatility and stock interest it is ideal for few options strategies.

Aruba Networks (ARUN) looks negative after it broke down below its support at 31. The stock looks quite negative with diminishing volume. Pick few directional options strategies

American Axle (AXL), Micron Tech (MU) and Riverbed Tech (RVBD) are having mild takeover rumors. Keep an eye on them and the implied volatility, any changes may mean something is cooking! We would play volatility if it does happen.

having a mild takeover rumor, though the technical and stock volume patterns are not strong. HLX has a support around 15. Speculative directional Option strategies can work well when the Implied Volatility (IV) is low.

is trading at all-time high. While the stock volume patterns are positive and improving with a support at around 35, it sure will have some short term pull back due to technical oversold conditions. Calendar options strategies while taking a short position on near month would be a good strategy.

American Electric Power (AEP) is on the takeover rumor mill, expected takeover by ETR. There seems to be a support at 37 and technical indicators are bullish. Option traders take advantage of the IV and can create bullish options strategies.

Juniper Networks (JNPR) is hot on the takeover rumor by ORCL, though technical is neutral with a support around 37. Keep an eye on this stock there will surely be few good Options strategies that can be put together.

Officemax (OMX) is on the takeover rumor mill but is not looking good technically and may break down below its support at 9. Options traders should keep a close watch on this one.

Random Thoughts!!: Anyone can go wrong, market is all about uncertainties and surprises. Smart Options Trading is all about discovering the opportunities from those uncertainties. Imagine what it can be if you combine the analysis of experts and option trading strategies - sky is the limit. Why get scared .. enjoy the roller coaster ride instead.

Chico’s FAS (CHS) is in the takeover rumor mill again. Good support around 14.0 with our technical indicators showing a emerging bullish trend.

Centene (CNC) is yet another takeover rumor. Yesterday’s volume surely shows that some action is expected from it soon. High call volume and high IV. We would love to put some volatility strategies around this.

Archer-Daniels-Midland (ADM) had a strong support around 34 and closed below the support with weak stock volume patterns, indicating a negative upcoming trend. Ideal to establish bearish options positions.

Biometric Therapeutics (BMTI) is having high options premium due to IV. Earnings did not ease the implied volatility (IV) yet continues due to the upcoming FDA hearing on May 12, 2011. Take advantage of high IV, ideal strategies in such situations is to sell on high IV and buy back on low IV.

Goodyear Tire (GT) is having some takeover murmurs. With a support around 17.5 and decent volume patterns is ideal for some options strategy creation.

Microsoft (MSFT): Get few Microsoft stock options for FREE - MSFT / SKYPE News giving us some great Options Strategies. With May2011 Option expiring in 10 days and a news of this nature is surely a breeding ground for speculations. Any speculation leads to increased implied volatility. These more than often leads to volatility skews. Best time to create options strategies to take advantage of the current situation and create few strategies which can be rolled over such that you can end up owning absolutely free stock options for MSFT. Ask us for examples!!

Dollar Thrifty (DTG) received a $72 bid from Hertz (HTZ). Traders seem to be expecting a bidding war as the stock jumped far above this bid. Keep a close eye on this there sure would be few great options trading opportunities as the story builds.

Virgin Media (VMED) is at all time high and all technical indicators with the strong volume patterns support an uptrend. Though short term it seems to be over bought and we would expect a short term pull back. Such a situation is great to create quite a few options strategies.

Karmax (KMX) fell sharply and now sits on a very strong long standing support. The stock had shown a range trading for past 7 months. If the stock falls below 31 then it would be considered quite negative. Great opportunity for option traders.

Weight Watchers (WTW) had earnings report and fell sharply. With technical indicators showing an emerging negative trend and the stock falling below one of its support is surely a bearish signal. With implied volatility still remaining in near month options, it would be a good candidate to put together options strategies.

Intrepid Potash (IPI) – traded at a new relative low. Stock volume patterns are mediocre, but worsening rapidly. There is resistance at 33.

Kilucke & Soffa (KLIC) – is breaking out on the upside. Stock volume patterns are positive and improving. There is support at 10 to 10-1/2.

Pioneer Natural (PXD) –The stock closing below 92 was negative. Stock volume patterns are poor and deteriorating. There is resistance at 94-96.

Sky-mobi (MOBI) had been extremely volatile of late, without any public news. Stock volume patterns are poor too. This provides option traders with ample opportunities.

Alcoa (AA) – is a takeover rumor once again. Rio Tinto (RIO) is the name this time. Stock volume patterns are mediocre, and there is support at 17.

Xerox (XRX) – is also a takeover rumor. There is support at 10, but stock volume patterns are poor.

BMC Software (BMC) – is a vague takeover rumor. Stock volume patterns are modestly positive. There is support at 50.

Dish Network (DISH) – settled a major patent litigation with TIVO and ECHO. DISH gapped much higher on the news. Stock volume patterns are modestly positive. Forest Labs (FRX) – had a big jump on no news. Stock volume patterns remain poor, though.

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